Projection for inflation in 2017 will below 4%, says Focus

São paulo – Economists from financial institutions began to see inflation of 2017 under 4% for the first time and the Group hit the forecasts cut to aprojeção the interest rate, according to the Focus survey released on Monday by the Central Bank.
The prospect for inflation this year fell for the 10th week in a row and now the estimate for the IPCA in 2017 is 3,93% against 4, 1% before. For 2018 also reduction of 0.03 percentage point, reaching 4,36%.
In April, the IPCA slowed the high the 0,14% about March and accumulated in 12 months 4, 8% advance, lower level on that basis of comparison since July 2007 and below the center of the target for the first time since August 2010.
This result opens the way for the Central Bank to be more aggressive in reducing interest rates. But the experts consulted in the Focus are still seeing new 1 percentage point cut in the Selic, currently in 11,25%, at the end of this month. To the end of this year and the next, was unchanged the projection that the Selic will 8,5%.
However, the Top-5, group that gathers the most hit the forecasts, it saw the Selic in 2017 to 8,25%, against 8,50% before, and in 2018 the 8,13% on median projections, about 8,50%.
In relation to the expansion of gross domestic product (GDP), the survey showed improvement for the fourth week in a row in the projection of this year''s expansion, reaching 0,50% on 0,47% before. For 2018 the expectation of GDP growth remained at 2,5%.